WHY HAS HUAWEI BEEN SO SUCCESSFUL WHEN ENTERING NEW OVERSEA MARKET？

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

In order to create successful business, we need to evaluate on which market that is suitable for our business. In this paper, we are going to discuss about the advantages and disadvantages of doing business in emerging markets and developed countries, From there, we can decide whether to expand our business in more promising markets.

If a business doesn’t have a mission nor vision then it will show that the business doesn’t have direction. When hiring locals Huawei should train them because unskilled workers could cost a business. If they don’t add any features in their products when it comes to Brand extension, then customers will be bored of the same old product. Not using different segments would lead the business to failure. Target market also can be a problem to Huawei because the products that they produce are only for people who are technological advanced

On Jan. 23, 2003, Cisco Systems, Inc. announced that it has filed a lawsuit against a Chinese equipment manufacturer, Huawei Technologies, Co., LTD and its subsidiaries, Huawei America, Inc. and FutureWei Technologies, Inc. over Huawei's unlawful copying of Cisco's intellectual property. Cisco is the worldwide leader in networking for the Internet with the headquarter located in US. Huawei, based in Shenzhen, China, is China's biggest telecommunications equipment maker, has a wide reach in Asia, and recently entered the U.S. market, challenging Cisco on the pricing front. Because the lawsuit happens between two representative companies of telecom industry in US and China

Shanzhai (“Bandit”) Mobile Phone Companies: The Guerrilla Warfare of Product development and Supply Chain Management. By: John Rediehs, Malini Seelan, Rama Paidi 1 Table of Contents Introduction Page. 2 Case Analysis Page. 2 Suggestion/Implementations Page. 4 Conclusion Page. 5 References Page. 6 2 Introduction Shanzhai (“Bandit Cell Phone”) is shaping the entire thought process of development, marketing, and technology in the largest cell phone market in the world. A market that has long been dominated by the corporate players like Nokia, Samsung, and Sony now face a tenacious domestic threat defined by a grassroots culture spreading within China. Shanzhai companies as they are referred to in this case study have gained a steady market

In addition, developing in the current market fits to the family constraints. Indeed, no more mobility is implied relatively to the current situation. Therefore, the company can focus on improving its managerial competencies and notably strengthen its overseas relationships.

We have selected Huawei Technologies Company Limited for our MIS project. We selected Huawei Technologies Company Limited because this is a Chinese company .At first we selected Citycell (Telecom Operator), but when we visited City cell we learnt that City-cell is now using Huawei product, and Huawei is a Chinese company. We know about the quality of Chinese product. Most of the Chinese product can not make people happy or satisfied. But we found that Huawei now is one of the top positions in the world. This inspired us about the Huawei.

For example, Sainsbury’s has target customers in the emerging countries by providing new products which customers have not purchase it before which causes the demand of product to be high. In this case, it can help the market economy to boost up, increase the brand reputation and the revenue of Sainsbury’s. In addition, diversification is an advantage of emerging market towards business. (Pendleton, n.d.) For example, diversification is an advantage of Sainsbury’s due to they can be suffering when the local economy face a downward turn.

China is the world’s largest mobile phone market. Due to the large size of the Chinese cell phone market and its potential for long-term continual growth, competition for access to China’s consumer markets is intense. For the first ten years after entering China, Motorola had no competition but now competitive threats from other multinational companies like Nokia, Siemens, Samsung, and local producers like TCL are a cause for concern within Motorola.

a. With more companies starting to expand to others country markets, the competition was taking global dimensions:

In today’s highly globalized world, companies are facing competitive pressure to expand into international markets. These markets offer immense opportunity, but they come with challenges and they require companies to develop new skills and abilities in order to success overseas. These developments include recognition of diverse consumer needs, cultural attitudes, political regulations, and product adaptations. The differences between operation in one country or multiple countries are significant, but if an organization can successfully adapt and implement these important abilities, it can tap into markets with great potential.

A company considers many aspects before entering a foreign market. The questions arising in the minds of managers before venturing in a new country can be –

In 2012, citing a risk to national security, (CNBC, 2016) the U.S. government put a ban on Huawei and its competitor ZTE, claiming that they can build backdoors in their equipment to leak sensitive information from America to China. Given the size U.S market, Ericsson-Cisco alliance and Nokia Huawei are currently and probably will benefit in future from this ban. Huawei also has weak professional services and lacked verified solutions, to strengthen on the cloud services business; it extended partnership (Bloomberg, 2014) with Accenture in 2014 to strengthen the cloud services. However, Cloud transformation in telco domain has just started to pick-up and it remains to be seen, which of these three giants (Nokia and Alcatel-Lucent, Ericsson-Cisco alliance, and Huawei) will excel with their M&A and

Huawei is produced in China and is distributed and sold in Europe, India, Africa and the US and UK. Their products being produced in one country and distributed to other creates a geographical space gap between the manufacturer and the consumer.

Facing the China’s Telecom Equipment industry double-digit grow and becoming the largest telecom market in the world, all leading firms in each subsectors of Global telecom equipment take this opportunity to invest in china. Huawei, a Chinese challenge, was starting its challenge to Cisco insurmountable leadership position in international telecom equipment industry.